Maximum amount of Leverage for a Section 301(d) Licensee.

CFR · 2024-01-01 · US · Title 13

This section applies to Leverage issued by a Section 301(d) Licensee on or before September 30, 1996. Effective October 1, 1996, a Section 301(d) Licensee may apply to issue new Leverage, or refinance existing Leverage, only on the same terms permitted under § 107.1150. (a) (i) The maximum amount of subsidized Leverage you may have outstanding at any time is the lesser of 400 percent of your Leverageable Capital, or $35,000,000. The same limit applies to a group of Section 301(d) Licensees under Common Control. (ii) The maximum amount of Preferred Securities you may have outstanding at any time is 200 percent of your Leverageable Capital. (2) Certain types and amounts of subsidized Leverage have special eligibility requirements (see paragraphs (c) and (d) of this section). (b) (c) (1) To qualify for a fourth tier of Leverage, you must have invested (or have Commitments to invest) at least 30 percent of your “Total Funds Available for Investment” in “Venture Capital Financings” (see the definitions in paragraphs (e) and (f) of this section). (2) While you have a fourth tier of Leverage, you must maintain Venture Capital Financings (at cost) that equal at least 30 percent of your Total Funds Available for Investment. (d) (1) To qualify for a second tier of Preferred Securities: (i) If your license was issued after October 13, 1971, you must have at least $500,000 of Leverageable Capital. (ii) You must have invested (or have Commitments to invest) at least the same dollar amount

official document · source cfr-2024 · id 13:§ 107.1160